Improvements in equity
A) involve comparing the welfare lost by some against the welfare gained by others.
B) are impossible if the initial distribution is Pareto Optimal.
C) generally increase efficiency.
D) can be scientifically evaluated.

Question

Quizplus · Accepted Answer

Improvements in equity involve comparing the welfare lost by some (usually the richer members of society) against the welfare gained by others (usually the poorer members of society). It is a subjective issue and there is no Pareto Optimal distribution. Therefore, (B) is incorrect. (C) is also incorrect because improvements in equity may not necessarily increase efficiency. (D) is partly correct, as some scientific evaluation can be done, but it is not a purely scientific issue.

Improvements in Equity